Question

Please explain in-depth how to calculate this and read the tables please!
Brief Exercise G-9 Click here to view the factor table 1. Click here to view the factor table 2. Click here to view the factor table 3. Click here to view the factor table 4. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) (a) What is the present value of $34,100 due 9 periods from now, discounted at 4%? (Round answer to 2 decimal places, e.g. 25.25.) Present value (b) What is the present value of $34,100 to be received at the end of each of 6 periods, discounted at 4%? (Round answer to 2 decimal places, e.g. 25.25.) Present values Click if you would like to Show Work for this question: Open Show Work

Answer 1

1) Present Value = amount to be received *( PV at r for n Periods)

Amount =34,100

r=4%

n=9

PV=Present Value at 4% for 9 Periods =0.70259

Answer: Preasent Value = 34,100*0.70259 = $23,958.32(Answer)

2) Present Value = amount to be received *PVA at r for n Periods

Amount =34,100

r=4%

n=6

PV= Present Value at 4% for 9 Periods = 5.24214

Present Value =34,100*5.24214 = $178,756.97 (Answer)